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Quantum Computing (QUBT) has caught investor attention after a recent upward move in its share price. This has prompted fresh interest in how this US-based integrated photonics and quantum hardware business is currently positioned.
See our latest analysis for Quantum Computing.
The latest 2.14% 1 day share price return to US$8.59 builds on a 9.01% 7 day gain, but this comes after a 21.98% year to date share price decline and a very large 3 year total shareholder return. This suggests that momentum has recently cooled even as long term holders have seen strong gains.
If you are looking beyond Quantum Computing to see what else is moving in this space, our screener of 22 quantum computing stocks is a straightforward way to spot other quantum themed opportunities.
With the share price at US$8.59, analyst targets sitting at US$18 and the company still reporting a US$68.355m loss, you have to ask: is there value left here, or is the market already pricing in future growth?
With Quantum Computing last closing at $8.59 against a most-followed narrative fair value of $23.67, the gap is wide enough to raise questions.
Acceleration of AI and data center workloads is driving urgent demand for energy efficient, high speed computing. This is positioning QCi’s room temperature photonic quantum and reservoir computing platforms to scale from small research contracts to larger production deployments, which should expand revenue and support higher gross margins as volumes increase.
Curious what kind of revenue ramp and margin shift sit behind that fair value? The narrative leans on rapid top line growth and a very demanding future earnings multiple. Want to see how those pieces fit together and what assumptions have to hold for $23.67 to make sense?
Result: Fair Value of $23.67 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, the story hinges on very small current revenue and rising operating expenses, so any slowdown in converting pilots into repeatable sales could quickly challenge this upbeat view.
Find out about the key risks to this Quantum Computing narrative.
So far, the popular narrative leans on future earnings to argue Quantum Computing looks undervalued at $8.59 versus a $23.67 fair value. When you look at today’s pricing instead, the P/B ratio of 2.2x tells a tighter story.
